Business
Vietnamese firms face impacts of climate change
  • | laodong, dtinews.vn | September 17, 2020 11:57 AM
Many Vietnamese enterprises are being badly affected by climate change according to the Vietnam Chamber of Commerce and Industry (VCCI).


 

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Chairman and President of VCCI Vu Tien Loc said Vietnam is among the top 10 countries most affected by climate change. VCCI conducted a survey of 10,400 firms in 63 provinces and cities about such problems, including nearly 1,600 foreign direct investment firms and 8,700 private sector businesses.

Climate change has disrupted businesses, reduced productivity and inflated costs. Firms in the central coast and Mekong Delta region are the hardest hit. The agriculture, fishery and forestry sectors are the most affected and newly-formed firms will face a worse impact than veteran companies.

Average losses caused by natural disasters and climate change to businesses are about VND95.2m (USD4,000) each. Nearly 100 firms said they suffered over VND1bn in losses. In order to deal with climate change, firms have applied various measures including adjusting business methods, upgrading technology and buying insurance.

"Many firms have supported ways of mitigating climate change. Most firms are willing to join such efforts," Loc said.

Firms also highly rated the government's readiness to deal with climate change, access to information, local weather data and helping firms to deal with the consequences.

According to the survey, besides the challenges, this was also an opportunity for firms to reform, strengthen their brand recognition and adopt new technology. Firms are willing to spend an average of 7.32% of their operational cost to be more environmentally-friendly.

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